Why Did GM Allen Roth Resign?

The sudden resignation of GM Allen Roth came as a surprise to many and a shock to a few. Allen had only been GM for 19 months when he announced he would be leaving. Fewer than two years before he had told the search committee he was willing to commit to a minimum of three years of service to Emerald Lakes. He repeated that assertion to the board when they did the final interview. At least some part of making him the choice for GM was that promise of long service. What happened to change things?

Mr. Roth turned in his resignation on December 26th, the day after Christmas. He stated that Saturday, January 25th, just 30 days hence, would be his last day. Contrast that to the previous GM, Gil Werner, who told the board in October of 2011 that he would be retiring at the end of May, 2012. Mr. Roth’s resignation was surprising, not only because he had been here such a short time, but also because he was giving no time to find and train a replacement. As many others, I wondered why this was so.

On Thursday afternoon of January 16th I sat down in the GM’s office to get answers to my questions. In order to ensure candor on the part of the departing GM, I agreed to withhold publishing the results of the interview until he was settled in his new job in distant Colorado. He was going to serve as the general manager of a combination owner/rental chalet and RV community in that state.

First, the obvious answer to the obvious question: why are you leaving? I’m leaving for a challenging position at a higher rate of pay in a part of the country that is new and exciting (to me)…or words to that effect. There’s no surprise there; it’s exactly the answer I expected.

The more interesting question, at least to me, was this: why was he looking for another job? Why, with just over a year as GM of Emerald Lakes, did Allen Roth begin a job search? And that is where the interview got interesting.

At first Allen laughed, a trifle nervously, as if he had been hoping he wouldn’t be asked this. This is where our agreement took shape. I didn’t want some diplomatic, politically correct, but ultimately false, explanation. I wanted to know the real reason or reasons. And so I promised to delay my reporting. Agreement reached, I repeated my question. Allen hesitated, as if searching for the right way to tell me what he was afraid might offend me. I assured him that I could handle whatever he had to say. He sighed, shook his head, and then told me that Emerald Lakes was in deep trouble. We are facing deteriorating facilities, amenities that are running down and capital projects that must be done, but at costs that he doesn’t believe the community is prepared to absorb. He explained, “When whoever it was wrote your bylaws, they had a brain fart (his term). They put the membership in charge of revenue. People who have absolutely no idea what it takes to run this community are the ones who decide how much money we get. It just doesn’t work.” He went on to discuss other communities, comparing those whose revenues are controlled by a board of directors to those whose membership are in control. In example after example, it was clear that membership control eventually leads to deterioration and finally receivership (bankruptcy). He said with some apparent sadness that he doesn’t see how we are going to raise enough money to do what must be done over the next five years. He then went on to describe the current working conditions for the GM.

“Your current board is essentially dysfunctional,” he said. “You have members whose main goal seems to obstruct any progress. They have no understanding of their proper role, no true understanding of how this association works, and they make it impossible for me to do my job as I see it.” While declining to name any specific directors, he insisted that since I attend the open meetings and board workshops, “You know who they are. I don’t have to tell you.” I had to agree, but since the GM declined to be more specific, I feel bound to leave it to the reader to figure out who he meant. I said to him, “Would it be fair to state that the behavior of these certain board members was an aggravating factor in your decision to seek employment elsewhere?” He laughed and answered with two words. “Big time,” he said.

First let me start by stating that your reporting skills are of the highest standards, at least in my opinion. I speak for many that are under the same impression and appreciate what you do for this community. I thank you for enlightening us regarding the departure of the general manager. I wish him well in his new endeavor. What I don’t understand is your agreement to withhold the article until now as I don’t see any thing that you reported that would have compromised his decision to accept the new position. Now I do think he went overboard in criticizing the board and members for what he terms: “People who have absolutely no idea what it takes to run this community are the ones who decide how much money we get. It just doesn’t work.” He went on to state “Your current board is essentially dysfunctional,” “You have members whose main goal seems to obstruct any progress. They have no understanding of their proper role, no true understanding of how this association works, and they make it impossible for me to do my job as I see it.” And you agreed. Now what I don’t understand is why he never raised these issues while he was still in his role as G.M.? His parting views are going to have some effect on the person who will entertain applying for the position. That person and I’m certain there will be many candidates will have his or her judgment prejudiced even before they start. I think he should have resigned by saying that he got an offer that he couldn’t refuse and leave it at that. Good luck to all new applicants, they will need it.

I find what Allen said about the state of our community very distressful. As much as I see the need to hike the dues, I am fearful that the board will only mismanage it again. They still haven’t dealt with the things they promised were going to do with the last raise. This is what I believe are most members’ issue with any raise. If this is truly “our” community than it is time to be completely honest about the true state of the community. I am tired of hearing about how the bar loses money. Every amenity loses money. How can the pools, indoor and outdoor, not costing more than it should when they are falling apart. Just as you pay a barmaid, you are paying a lifeguard. One Friday, the lifeguard was guarding about 5 people the entire evening. The lifeguard stayed fully dressed the entire time.
What do we really need while we get our community and finances back on track? Maybe we need to close all the amenities (except garbage) until our infrastructures are fixed. Even though having a community center is good for selling homes, ours is falling down. Plus, we can no longer afford it. We need to downsize until we can afford our luxury amenities again. It is time to take action or we will be a community no more.

A child is like a butterfly in the wind. Some can fly higher than others, but each one flies the best it can. Why compare one against the other? Each one is different. Each one is special. Each one is beautiful.